Production Operation Management

Final project
Bata shoes company

Muhammad faizullah S2019005044

Muhammad Raza S2019005009
Muhammad zubair amin S2019005027
Ameer Talha S2019005061
Process of Bata Shoe Company:
Bata shoe factory made their product in good quality for their potential customer to get the
attention of other brand followers. For shoe manufacturing the process is basically the same for
any type of shoes. And the sports shoe manufacturing process is actually used to make kids
running shoes. The most similar are fashion shoes and women’s high heel shoes and sandals. As
we know any company around the world follows the same and basic steps to make shoes.
The basic processes of shoemaking steps are as followed
 Order the material of the shoe
 Design shoe
 Develop the shoe
 sole manufacturing
 Cutting lines
 Stitching shoe upper parts
 Heat setting machine
 Packing the shoes
1. it’s very common that all types of shoes are made of leathers, rubber, foam, textile, and
some are made of plastic where each has its specific usages in footwear. As we know this all
type of material you have to be in your company selection of material is the fundamental of
shoes design. But Bata is the number one brand in all around the word regarding quality and
services which they provide to the customer.
2. As in every company different skills of worker have a different task to do Bata also have
an operation and design department the worker who knows what can make shoes look good
and attractive. The buyer provides early outlines and designers improve them to keep they are
technically correct for the shoemaking process.
3. Developing shoes, you need to have all the equipment and machines, labor force,
cutting line worker heating setting machine stitching, outsole, etc. then you can create and
develop your own product.
4. Before making a shoe the inner and outer shoes required in the shoe are also produced
in-house huge rubber sheet measuring having a thickness of approx. which are first heated to
high temperature and then placed in a curing chamber after that sole is prepared.
5. In any shoe manufacturing company shoe production process starts with cutting the
materials. Actually, shoe parts are generally cut by steel dies which are very sharp. as we know
every new design of shoes needs its own cutting dies. Which are known as shoe patterns.
6. When the shoes are designed and organized the stitching department the factory the
stitching takes the responsibility for preparation as in any company the operations are divided
among all worker to perform their own part like one individual will sew and then pass it to the
other worker to attach the eye stay parts.
7. This machine is prepared by dirt collector, which claims sound pressure, low-noise and
easy to clean This machine apply superior polishing motor with solid power, matched by trade
in the transducer, which makes the improving speed changeable, machine running easily and
the ideal polish effect produced a different type of shoes.
Purpose this machine is suitable for unending, shining as well as gum removal and
cleaning.
8. Produces kids’ shoe sizes alternating from 18 to 40. At what time a new line of footwear
is announced, the suitable box size is selected physically from a limited choice. Boxes of a
similar size are used for footwear of several types and sizes. The footwear ordered by each
customer is then packed into one or several large cardboard boxes, and these cardboard boxes
are size customized for each set of shoeboxes to pack

Executive summary of Bata Company:

Bata Shoe Company is represented by its name it’s a multinational company in 1962. The first
time it was founded on 24 august 1894 in then Austria-Hungary the founder was Tomas Bata.
And headquarter was laid in Switzerland now they severed all around the world. They have
started their operation in Bangladesh. And their modernization took place in the 1980s. Bata
Shoes Company is the market leader in the footwear industry since it started its operation in
Bangladesh, they get a position in customer mind that whenever they heard the name of Bata
shoes with high quality come into their mind. Bata has been serving its customer with a wide
assortment of products for about five decades and doing it successfully Bata is the no 1 brand in
the footwear market. The product range is very large in quantity and they are manufacturing a
different type and quality for all customers. They treat in a very good manner with their
customer in a shoe segment. When it established its manufacturing plant at tongi in 1962. As it
was the first manufacturing plant to made shoes on a large scale in East Pakistan. The annual
growth rate of 21%experenceing by local footwear manufacturing now it is on the top ranking
around the globe.

INTRODUCTION:
Since 1942 Bata Pakistan has been rendering its services to its valued customers by offering
quality products. It was incorporated in Pakistan as Bata Shoe Company (Pakistan) Limited in
1951 and went public to become Bata Pakistan Limited in the year 1979. Since its inception, the
company has not only maintained a good reputation of manufacturing high quality footwear for
all segments but has also been designing shoes in accordance with the changing fashions and
trends. Bata Pakistan is serving its valued customers through a strong retail network comprising
of more than 500 retail outlets, 200 registered wholesale dealers,10 sales offices, 9 distributers
& 5 wholesalers across the country. Besides catering local market, Bata Pakistan also shows its
presence in an international footwear market through its export department which is
constantly exploring new potential market in order to earn foreign exchange. Being a
multinational company Bata Pakistan has played a vital role in the economic progress of
Pakistan. It has introduced sophisticated technology and business skills to the country and
provided direct and indirect employment to about 10,000 people. Along with its own
manufacturing capacity Bata Pakistan is also outsourcing its products nationally and
internationally to meet the demands of its valued customers. As the Corporate social
responsibility is an integral part of every business and Bata Pakistan fulfills its CSR by
patronizing various charitable organizations and also takes part in rehabilitation of society
during the natural disasters. Moreover, Bata Pakistan is also operating an international program
under the name of Bata Children program, which aims to create a brighter future for the
children of the community in which we operate. Under this program Bata Pakistan encourages
and supports under privileged children by providing shoes, donations and also arranging
different healthy activities for them which add values in their lives. Bata has always been the
market leader and in order to maintain its leadership it has invested millions of rupees in
updating its systems and equipment during the last few years. This will enable the company to
expand, modernize and develop its operations and in the process provide additional
employment opportunities. Bata the market leader is well equipped to cater the customer’s
demands and to meet future challenges.
In August 2003, Doug Hearns, MD Bata Pakistan, was considering the efforts necessary to
realign Bata Pakistan’s manufacturing outsourcing, distribution, and brand strategy in the light
of increased local competition and Chinese imports. Traditionally Bata had catered to the lower
middle- and middle-class market. In 2001, however, Bata decided that instead of competing at
the lower end of the Pakistani market, it would concentrate on the higher end, through new
fashion brands such as Marie Claire and licensing global brands such as Slazenger and Hush
Puppies. This decision entailed increasing manufacturing outsourcing from 17% to 70%; and
building up a premium retail network, including mega stores, and most importantly building up
a new cadre of management capable of leading Bata in the twenty-first century.

PROCESS AS IT STANDS
Footwear manufactured by Bata could be grouped into six broad categories, based primarily on
the nature of manufacturing technology and material used. The production technologies varied
from processes like ‘lasted stuck-on sole’ which involved labour intensive stitching, to the
complex, capital intensive ‘direct injection’ process for producing joggers. In 2002 Bata carried
about 1,500 Stock Keeping Units (SKU) at any one time, of which two-thirds (representing 17
per cent of total pairs sold) were procured from outside vendors, known as Associated Business
Units (ABU).

According to an executive in the production department:

We prefer to produce women’s shoes in-house. However, we prefer to outsource complicated
and trendy fashionable shoes because of the small volumes involved: small volumes just
increase costs. Similarly, we prefer to produce children’s shoes, particularly our popular line of
Bubble Gummers, in- house except for small volume lines. But even for many of the shoes we
produce in-house, we may procure the complete stitched upper. Thus, Bata imports stitched
uppers for joggers and school shoes from China. If we were to outsource, the labor would be
free, and the machines would not be utilized to their full capacity. Once someone is employed
at Bata, he or she is here forever. We don’t fire people just because business is not doing well
or they are causing extra overheads.

Commenting on future manufacturing strategies at Bata, Doug remarked:

The future is no longer in traditional labor-intensive manufacturing. We will continue to do

specialized manufacturing in-house but gradually increase the level of outsourcing to cater for
up to 70 per cent of our sales. We will focus on new Air Molding Injection Machine
technologies. Traditional manufacturing requires 27 persons per conveyer, while the newer
technologies only require two people.

Baseline:

A baseline is a specific point of interest that can be compared to other data. In market, a
project's or product's performance is often calculated against a baseline amount for prices,
revenue, or a variety of other factors. Both potential revenues are assessed against the
benchmark.

Bata over the decade used the current knowledge from its globally and locally experience to
create adaptive and innovative baseline standard for the shoes in company .
CUSTOMER Order the
material of
the shoe

SALE

Design shoes

PRODUCTION

Develop the
shoes

wait

PLANT A
Sole
manufacturing

PLANT B
Cutting
lines

Stitching
shoes
PLANT C
wait

Heat
setting
WAREHOUSE machine
Move Packing
shoes

1 DAY 3 DAYS 6 DAYS 10 DAYS

Context and objective

. Bata's slogan, "Leave a brighter Shoe Print," reflects the company's contribution to greater
social and environmental responsibility.

. In order to estimate social and environmental efficiency in production facilities, shops, and
workplaces, the organization needs the creation of a Key Performance Indicator (KPI)
measurement scheme.

Outcomes

Sofie’s chooses six key performance indicators (KPIs) based on the Global Reporting Initiative's
(GRI) methodology, such as the energy used per pair of shoes made.

On a quarterly basis, relevant data is gathered regularly. These data are used to establish the
group's baseline and track its progress over time. An executive KPIs study with detailed figures
aids administrators in understanding the company's core sustainability patterns.

In order to incorporate the most applicable development steps, a series of guidelines is

developed based on Cleaner Production values, democratic principles and best practices, as
well as discussions with key stakeholders of the organization.

Keeping it locally

We believe that sustainability should be an intrinsic and intuitive part of everyday life within
the company. We, therefore, encourage sustainability initiatives at a grass-roots level, enabling
our employees, managers and business partners to identify and implement business-
appropriate solutions to sustainability challenges.

BATA-OWNED MANUFACTURING FACILITIES.

 Bata works with carefully selected suppliers in Europe (Albania,

Approximately 50% of our shoes are manufactured in Bata-owned factories. Each of our factories has been
developed to cater for the local market, employing local people, sourcing local materials and purchasing from
local businesses. We have also built Bata towns, providing our employees and their families with homes,
education and community facilities.

Bata suppliers

Czech Republic, Italy, Macedonia, Romania and Spain) and in China and Vietnam.
Approximately 60% of suppliers have worked with Bata for more than five years, 40% of
suppliers have worked with Bata for between two and five years, and 10% of suppliers have
worked with Bata for less than two years.

Improvements:
At every move, we are making history. A well-thought-out shoe would result in a superior
product. We want to be at the forefront of making the planet a better place by assisting
employees in achieving their goals and staying centered, fit, and energized while at work. Allow
us to assist you in enhancing your professional life.

Suggestions:
To Make it Attractive:
Bata formal leather shoes, athletic shoes, and children's shoes should be made more appealing
by showing the available variety and the range's uniqueness; the range can be presented in
such a way that the buyer is attracted to purchase it.
To Improve Distribution Policy:
Finding out which item is in high demand and the rate at which it is used, and then delivering
the product in time to satisfy demand, is one example of delivery.
R & D Activities:
R&D activities include making shoes more stylish, appealing, and incorporating innovations that
today's buyers and customers need, such as snuggery, airflow, and other features.
Schemes:
To increase sales, the corporation should introduce schemes. Free gifts, discounts for the aged
during the winter months, discounts for school shoes during the school year, and the same for
casual shoes during the holiday season, as well as discounts during the festival months of May
and June.
Target:
Kids, women, and adults of different ages are the target markets for batá marketing strategy.
Bubble gummers, as well as a variety of items for girls, such as school and casual bags,
stationery, and so on, have been a huge success for Bata. Power for young age and sport spirit
citizens Marie Claire for ladies offers a good combination of active lifestyle and contemporary
modern designs.